adjusting entries & trail blance for a merchandiser instead of a service company

Morgan Fright, Inc. adjusts its accounts monthly, but performs closing entries annually on December 31. This is the studio's unadjusted trial balance dated December 31, 2010. MORGAN FRIGHT INC. Unadjusted Trial Balance December 31, 2010 Cas 16200 Account receivable 87000 Allowance for doubtful accounts 2500 10500 Supplies 7500 Prepaid studio rent 144000 Studio equipment Accumulated depreciation: studio equipment 65000 Accounts payable 10500 Notes payable 37500 750 Interest payable Unearned clients 15000 4500 Income taxes payable Capital stock 60000 Retained earnings 45000 130500 Sales Revenue Purchases of supplies 9000 Salary expense 28500 750 interest expense Studio rent expense 39000 Utilities expense 6300 Depreciation expense: studio equipment 13500 9000 Income taxes expense TOTAL 371250 371250